BROADCASTING

SUMMARY OF REVISION OF BROADCAST OWNERSHIP
RULES

On September 4, 1992, the FCC revised its radio broadcast
ownership rules and
policies. The rules adopted in the Report and Order
relaxed the national ownership caps to
allow a single licensee to own up to 30 AM and 30 FM stations
nationwide. The previous
limit had been 12 AM and 12 FM stations overall, with ownership
in up to two more stations
in each service, providing that those stations were minority
controlled. The national
ownership rules were further amended to permit a single entity to
hold an attributable interest
in up to 18 AM and 18 FM stations. This Report and Order
would automatically increase
national ownership limits to 20 AM and 20 FM stations in two
years, and permit an entity to
hold a non-controlling attributable interest in an additional
three stations in each service if the
stations are controlled by minorities or small businesses.

On Thursday, October 20, 1994 the Commission affirmed its 20/20
limit and increased the
number of minority controlled or small business-controlled
stations in which a non-minority
broadcaster may hold non-controlling but attributable interest
from three to five stations
above the 20/20 limit.

Does the increase in the nat'l ownership limits threaten
competition, viewpoint diversity
or help to resolve the financial problems of the broadcasting
industry?

Given the dramatic increase in the number of radio stations
and the growth of competing
media in recent years, the Commission remains convinced that
the likelihood of a single firm
or group of firms exercising dominance or undue control over the
radio stations at the
national level is extremely remote. Several petitioners
argue that the higher national
ownership limits will work against independent and minority
broadcasters because they will
be unable to compete with large groups. Some petitioners contend
that because minority
owned stations tend to be low-rated and unprofitable, the new
limits will drive minorities out
of broadcast ownership and preclude new minority owners from
entering the industry.

The
Commission also maintains that given the significant increase in
the overall number of
stations, increase in the national caps pose no threat to
viewpoint diversity. However,
several petitioners disagree.

The commission predicted
that this expansion in national limits
would strengthen existing stations by allowing them to achieve
economies scale through
combining administrative, sales, programming, promotion,
production or other functions.
Petitioners argue that the Commission's decision was based on
"incomplete and often self-serving industry sponsored figures
which overstate recession related short-term losses and
obscure the fundamental health of industry."